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TABLE OF CONTENTS

About Vecron Exim & Choice Bank Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Fast Access to Working Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Case Study: Pre-export Working Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Case Study: Purchase Order Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Case Study: Agricultural Export Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Case Study: Structured Trade Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Case Study: Factoring/Accounts Receivable Financing . . . . . . . . . . . . . . . . . . . . . . . . 9

Vecron Exim was founded through collaboration between former trade industry executives, highly skilled financiers and successful Silicon Valley VCs. Having worked within and alongside these industries, we have accumulated deep understanding of the complications trade businesses and start-ups face when interacting with conventional banks.

As an independent finance company with vast international trade and business experience, we are able to make prompt decisions that are aligned with our partners objectives, throughout the supply chain. Our diversified management integrates different industry experience and expertise, and provides a unique perspective from which we are able to customize an ideal solution by integrating.

Vecron Exim is a leading global trade finance firm, devoted to generating a full spectrum of innovative solutions to diversified trade finance challenges. It is our mission to continue to be an industry leader in the development, execution, implementation and support of tailor-made financial structures to suit the entire range of the supply chain.

ABOUT VECRON EXIM

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Choice Bank Ltd. is an international bank chartered in Belize, offering financial solutions for companies and associations, as well as high net worth individual clients. Experienced staff, state of the art banking technology, and strategic partners allow us to deliver professional, trustworthy service.

ABOUT CHOICE BANK LTD.

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Up to $3,000,000 per transaction » Pre-export / working capital finance

» Purchase order (P.O.) finance

» Accounts receivable finance

» Structured trade finance

Flexible liquidity on demand Trade volume is achieved by deploying resources effectively. Vecron Exim consolidates accessible, diversified and cost effective resources to accommodate fluctuating trade volumes.

Cross border expertise The evermore complex international marketplace requires unique expertise. Vecron Exim provides cohesive, customized services to solve cross-border business issues.

Tailor made solutions Each trade is different. Vecron Exim offers customized solutions for exceptional requirements.

FAST ACCESS TO WORKING CAPITAL FOREXPORT OR DOMESTIC TRADE

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Our ClientUS based manufacturer and exporter of industrial machines.

The ChallengeOur client has received a purchase order in an amount of $2 million from its buyer in China. The production components cost for the said purchase order totaled to approximately $1 million and had to be paid to the applicable suppliers on a ‘cash on delivery’ basis.

The negotiated payment terms for the described transaction specified payment by a letter of credit on completion of production and shipment of the manufactured machine, approximately 4 months after the date in which the purchase order was issued.

Even though the transaction was highly profitable, the client needed a short term injection of cash to pay the production cost. Due to maxing out of its traditional credit lines, the client could not obtain the needed capital via conventional financial products.

PRE-EXPORT WORKING CAPITAL CASE STUDY

The Solution» Vecron Exim advances 50% of the purchase order amount to the client

» 120 days later Vecron Exim collects from the buyer’s issued letter of credit

The Results» Utilizing Vecron Exim’s Pre-export Working Capital, the client has sufficient cash to complete the purchase order and accept other similar orders and has increased annual revenue

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Our ClientAn upscale fashion brand, manufacturing in Hong Kong and marketing to high-end department stores in the US.

The ChallengeOur client regularly receives purchase orders from its US buyers. As the marketplace is a buyers’ market, our client had to accept payment terms in which the period between production and payday is over 90 days. Due to our client’s success and growth, they became highly profitable but did not have sufficient cash-flow to support timely production.

PURCHASE ORDER FINANCING CASE STUDY

The Solution» Vecron Exim finances the client’s purchase orders by paying the manufacturer at the time the purchase order was issued

» 90 days later, upon maturity of the invoices, Vecron Exim collects from the US buyers

The Results» Our client now has sufficient working capital to support its growth in sales

» Additionally, our client can now allocate additional capital to its marketing efforts and achieve further growth

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Our ClientA trader of fresh produce, purchasing the goods from US and Canadian farmers and selling to Indian buyers.

The ChallengeOur client has managed to tap into the Indian market by offering its buyers payment terms according to which payment will be due 30 days after delivery of the goods. Our client must pay the farmers upon loading of the goods to containers.

AGRICULTURAL EXPORT FINANCING CASE STUDY

The Solution» Vecron Exim paid the farmers directly upon presentation of bill of lading

» Vecron Exim collected, 30 days after delivery, from the Indian buyers

The Results» Our client was able to effectively penetrate the Indian, and additional, markets by offering more favorable payment terms than its competition, selling the exact same product

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Our ClientA Swiss security house, purchasing raw gold in Africa and selling to a gold refinery in France.

The ChallengeOur client regularly purchases small quantities of raw gold from local miners in Ghana, bundles it and then ships it to a gold refinery in France. Due to the undeveloped banking infrastructure in the country, the client has to pay the miners in cash upon delivery of the raw gold, but collects from the refinery only after the raw gold has been delivered and inspected. The client’s sales were limited to the amount of working capital they possessed.

STRUCTURED TRADE FINANCE CASE STUDY

The Solution» Vecron Exim deposits funds to an escrow account in Ghana

» Our client is able to withdraw funds to pay the miners

» When enough raw gold has been accumulated in Ghana, it is shipped to the refinery in France

» Following a successful inspection, the refinery pays for the gold to Vecron Exim’s collection account

» Profits are distributed back to the client’s escrow account

The Results» The client has tripled the quantity of raw gold it purchases and sells and has dramatically improved its profit without investing additional cash

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Our ClientUS based distributor of pharmaceutical products, purchasing from US manufacturers and selling to US pharmacies.

The ChallengeOur client has maxed its open balance with its suppliers, but had open term invoices due to collection from its buyers in 60 days.

FACTORING/ACCOUNTS RECEIVABLE FINANCING CASE STUDY

The Solution» Vecron Exim pays the client 85% of the face amount of the invoice

» Vecron Exim collects the entire invoice amount from the buyers 60 days later

» The difference is paid back to our client

The Results» The client was able to grow sales and maintain the agreed upon balance with its suppliers

trade finance - homepage - choice bank ltd. · pdf filevecron exim was founded through...

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